Monday, June 28, 2010

NEW YORK - Net Lease News for today is that iStar Financial Inc. (NYSE: SFI), a publicly traded finance company focused on the commercial real estate industry, has completed a sale of 32 real properties, or interests therein. This sale of real properties is to various subsidiaries of Dividend Capital Total Realty Trust Inc. The Commercial Real estate properties are leased to a diverse group of corporate tenants, primarily on a triple net lease basis. iStar's portfolio is highly diversified by product type, geographic area, loan structure and origination vintage.

The aggregate purchase price for the portfolio was approximately $1.35 billion, before closing costs and other items. iStar Financial provided Dividend Capital Total Realty Trust Inc. with mezzanine loans totaling approximately $106 million as part of its financing for the transaction. These mezzanine loans bear interest at an initial blended rate of 8.8% per annum and have effective maturities of three and five years. The balance of the purchase price was received in cash.

The Company expects to use the proceeds from this transaction to repay a $925 million loan secured by the properties being sold, as well as for general corporate purposes. Company expects to recognize approximately $250 million gain associated with transaction.

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